Mortgage News
CI claims rejected for non-disclosure remain low, says Zurich
Zurich’s half year results showed 91% of critical illness (CI) claims were paid out.
The payments amounted to £32.7m and the number of claims paid out for its UK life policy customers was 411; with one policy paying out £1.05m.
Non-disclosure was cited as the reason for 1.5% of declined claims and the remaining 7.5% were turned away because condition definitions were not met.
Peter Hamilton, head of protection proposition at Zurich, said: “In the small proportion of cases where claims can’t be paid, it’s largely because the condition suffered does not meet the terms of the policy.
“As a nation, we remain hugely under-insured; cover such as this is an essential element of sound financial planning.”
“It is also encouraging to see claims declined due to non-disclosure rates remaining low. Investment by the industry into initiatives to help improve understanding of the issues seem to be paying off.”
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Cancer was the most common reason for payments at 60%.
Heart attack accounted for 13% and stroke for 7%, while benign brain tumour and multiple sclerosis each accounted for a further 5% of payments.
Zurich publishes both annual and six-monthly CI claims statistics.